CIE IGCSE Topical Past Paper 1

3.31 Marketing mix – Product

0450/13/M/J/2025

MDZ manufactures a range of chocolate bars. It has 300 employees. MDZ purchases its ingredients from suppliers in the local area. Acting in an ethical way with its stakeholder groups is important. MDZ has products at different stages of the product life cycle. The business is also developing a new product. The Marketing Director needs to make decisions about the packaging and the price
of the new product. She knows it is important for a business to use a suitable method of sales promotion for a new product.

(a) Identify two roles of packaging. [2]
Role 1:
Role 2:

(b) Identify two stages (other than development) of the product life cycle.[2]

0450/12/M/J/2025

NFC manufactures shoes using batch production. Quality assurance is used to maintain quality. NFC uses market segmentation. The Marketing Director is reviewing NFC’s product range. He knows there are both benefits and limitations to developing new products. He also knows the
promotion of products is important.

(e) Do you think the benefits for a business of developing new products are greater than the limitations? Justify your answer. [6]

0450/12/O/N/2023

Paolo wants to start up a business making cakes. He plans to sell all of his products to a wholesaler. Paolo knows the packaging for his products will be important. He has prepared some financial and sales data. An extract from this data is shown in Table 1.1. Paolo is considering using crowdfunding as a source of finance. He knows the business will also need working capital.

Extract from Paolo’s financial and sales data
Average price per cake	$6
Average cost per cake	$4
Forecast average number of cake sales per day	50

Table 1.1

(c) Outline two reasons why packaging will be important for Paolo’s business. [4]
Reason 1:
Reason 2:

045/13/M/J/2023

TDG is a bicycle retailer. It has 3 employees. TDG needs to maintain customer loyalty as the business sells in a mass market. Simon, the manager, knows managing cash flow is important. He is analysing TDG’s cash-flow forecast. An extract is shown in Table 1.1. Simon is considering ways for TDG to overcome its short-term cash-flow problem in September.

Extract from TDG’s cash-flow forecast 2023 ($000)
	July	August	September
Cash inflow	X	50	40
Cash outflow	50	50	(Y)
Net cash flow	10	0	(40)
Opening balance	20	30	30
Closing balance	30	30	(10)

Table 2.1

(e) Explain two methods a retailer could use to maintain customer loyalty. Which would be the best method to use? Justify your answer. [6]